BIR Ruling [DA-391-99]

July 8, 1999 BIR RULING [DA-391-99] Hon. Gemma Cruz-Araneta Secretary, Department of Tourism Department of Tourism Building T.M. Kalaw Street Rizal Park, Manila Dear Madam Secretary : This refers to your letter dated April 7, 1999 requesting for a waiver of hotel room taxes, and other tax incentives on behalf of the organizers of the international activity entitled "Robinson Expedition," to be held in the country during the months of May and June. In reply, please be informed that the power to grant any tax incentive such as exemptions of or waiver of payment of the same, are not within the province of the Bureau of Internal Revenue. This power resides in the Congress of the Philippines as provided for in Article VI of the 1987 Constitution of the Republic of the Philippines, to wit: "Section 28. (1) The rule of taxation shall be uniform and equitable. The Congress shall evolve a progressive system of taxation. xxx xxx xxx (4) No law granting any tax exemption shall be passed without the concurrence of a majority of all the members of Congress." The above provision clearly lodges the power to tax, and with it, the power to exempt any person/entity or similarly situated persons/entities, in the Congress of the Philippines, which is composed of the Senate and the House of Representatives. This power to tax, and the accompanying power to grant exemptions cannot be delegated unless there is explicit constitutional authority. HIaTCc Therefore, we regret to inform you that your request for a grant of tax exemption is denied by reason of the lack of authority of the BIR to exercise such power. Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue